Leerdammer removes high milk price 'from the market'

LactalisLeerdammer reports that there are no political reasons behind the increase. This comes directly from the current favorable market. The basic milk price of LactalisLeerdammer increases this month by €2,05 to €57,24 per 100 kilos. With that, they remain at the top in the Boerenbusiness Milk price comparator.

Although various processors have yet to announce the milk price for this month, the margin seems so large that the French group can no longer be overtaken. Looking back at the past five years, Lactalis-Leerdammer was never the best payer, but usually a stable mid-range. And so the relatively high milk price raises the question of whether Leerdammer wants to please its suppliers, now that the battle for milk in the Netherlands is in full swing. Moreover, a new group of Leerdammer suppliers is threatening to leave, according to the grapevine.

Anne Bosma, manager milk supply, responds when asked and says that this is not the case. He also does not recognize himself in the rumor about the many cancellations. "The increases that we have implemented come from the market that is very favorable at the moment." He does recognize that dairy farmers are being pulled hard, also suppliers of LactalisLeerdammer. "But the other way around, dairy farmers also ask us."

The ambition is to grow in suppliers in the coming years to be able to meet the growing sales of cheese. Leerdammer cheese was recently launched in eight new countries, including the US, Poland and Brazil. According to Bosma, it is not immediately about thousands of tons, but there is growth, just like in the traditional markets. "The new markets are partly due to our parent company Lactalis, which can open doors worldwide," says Bosma.

Postponement in ACM investigation
In the meantime, LactalisLeerdammer is working to provide more transparency in the milk price, on compelling request of the ACM, as was announced at the end of September. This happened after a complaint from the LVLC. Initially, LactalisLeerdammer had to present a new price system within three months to avoid the penalty of a maximum of €1.050.000. At the request of the cheesemaker, that date was postponed by the ACM, from December 5 to April 4, 2025.

LVLC responded by calling the postponement 'very special'. LactalisLeerdammer had been aware of this violation since June of this year through the draft decision. Long before that, it had already been indicated in discussions with the ACM that this constituted a violation, it is stated. The LVLC has therefore filed an objection to this postponement as well as to other points in the final decision.

The LVLC indicates that LactalisLeerdammer does not formally want to sit down with the supplier association to discuss making the price system transparent. They are holding off and prefer to take the legal route, it is said. According to the organization, LactalisLeerdammer has been asked several times to enter into discussions about this. The LVLC indicates that it has always tried to take the amicable route and is still open to mediation.

Bosma experiences this differently. He says that there is contact with all suppliers, whether or not he or she is a LVLC member. He does indicate that there is no discussion with the supplier association as such. He leaves the exact reason for this unclear. The concept plan will first be presented to the sounding board groups and then to all livestock farmers, he indicates. Bosma hopes for a good outcome.